written by Jake Shockley, Senior Tax Accountant
The Internal Revenue Service has implemented an online account that everyone can access, and there are multiple benefits to setting up your own online account. The biggest benefit is that you can make tax payments directly from your bank account or credit card.
Due to the toll that the pandemic has taken on both the U.S. Postal System and the IRS, electronic payments can be a more reliable way to ensure that your estimates, extensions, or balance due are received on time and credited to the correct period. When you pay online, you will also be able to view your payment receipts on the account. You can easily access it so you don’t have to go back through a year’s worth of bank statements trying to figure out what your quarterly payments were.
Along with your payments to the IRS, you can also view the IRS’s records of your Advance Child Tax Credit payments and your 2021 Economic Impact payments (the stimulus check).
Signing up for an account also allows you to view your IRS transcripts. You will have access to three kinds: Wage and Income, Account, and Return transcripts per tax year. A wage and income transcript will show you what tax forms have been filed under your social security number. Account transcripts show any payments or refunds that have been paid to or from you. Return transcripts show what the IRS has on file for your return. This transcript will reflect any changes that have been made by amended returns or corrections the IRS made.
IRS notices can also be found on your account. If you received a notice have lost your copy, you can often find a copy on the account. Though this capability is not currently as advanced, many of the notices can be viewed from here.
Finally, if you owe the IRS but are unable to pay the balance due, you can easily set up installment plans. There are two free ways to set this up to pay within 90 or 180 days. Anything longer will revolve around a monthly payment and will cost $130 to set up. Whether you need a short term installment plan or long term, you can easily set up a plan to pay your taxes with a few short clicks.
These are just a few of the benefits having an IRS account will give you. To sign up, you can visit this link. Please don’t hesitate to contact HKA at firstname.lastname@example.org or (314) 993-4285 for more information!